More than 12 million euros in benefits has been paid out by mistake for Temporary Employment Regulation Files or ERTE to people in the Balearic Islands and millions more to residents in the rest of Spain.
The State Public Employment Service, or SEPE has already started reviewing accounts and those who’ve been paid too much will have to pay it back.
If the money is refunded within 30 days no surcharges or interest payments will be charged, otherwise a penalty of 20% will be added to the total.
It's possible that people will be allowed to split the repayments into 60 monthly instalments, but if they choose to defer payments for longer than 5 years an extra 3.75% interest payment will be charged on arrears.
SEPE estimates that around 21,300 residents in the Balearic Islands alone will have to pay back around 570 euros each, but the exact amount will vary from case to case.
The overpayments were caused by system errors, such as benefits being paid for weeks or months to people who were already out of ERTE and back at work, others receiving a lot more money than they were entitled to and some who were in partial ERTE but receiving the full amount of aid.
All those who were paid the wrong amount will be told how much they owe, either by mail or email. They will also be given the Bank of Spain account details to deposit the money and will have to send a payment receipt to SEPE via email.
Anyone who objects to the repayment of ERTE benefits must book an appointment at SEPE Headquarters online and present their case in writing within 10 days.